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university of southern california Operations And Supply Chain Management Assignment Help - A corporation

Question - A corporation with $7 million in annual taxable income is considering two alternatives: Before-Tax Cash Flow Year Alt. 1 Alt. 2 0-$10,000-$20,000 1-10 4,500 4,500 11-20 0 4,500 Both alternatives will be depreciated by straight-line depreciation assuming a l0-year depreciable life and no salvage value. Neither alternative is to be replaced at the end of its useful life. If the corporation has a minimum attractive rate of return of 10% after taxes, which alternative should it choose? Solve the problem by: (a) Present worth analysis (b) Annual cash flow analysis (c) Rate of return analysis (d) Future worth analysis (e) Benefit-cost ratio analysis (f) Any other method you choose

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